FAQs on Equity Grants
We are delighted that you have agreed to join NetraScale as an independent contractor and in due course, a shareholder. While we cannot and do not offer legal or financial advice to our contractors, we have prepared this general FAQ document to address questions that we get regularly.1. Can I receive cash payments instead of equity?
- No, this equity is instead of cash, and it is not currently exchangeable for cash. If you are looking for a role that pays in cash, this is not the right role for you.
2. How soon can I cash in my equity?
- Even after your shares have vested (see 3 below), they will still not be able to be sold until there is a liquidity event (like a sale or IPO in relation to NetraScale). There is no current timetable for a liquidity event.
3. When will I receive my equity?
- New hires will receive a subscription agreement for their shares approximately a month after starting. Shares will vest in two tranches, half six months after you start and the remainder one year after you start. If you leave before the six-month or one-year anniversary, you will forfeit any unvested shares.
4. How many shared will I receive ?
- Normally, 45,000 but this will be confirmed when an offer is made to you.
5. What is the nominal price for the common shares to be issued ?
- A total of C$1.00.
6. How much are the shares worth ?
- Consider these shares an investment. Today, they have no liquid value (i.e. they cannot be converted into cash) and cannot be sold or transferred. At the point of a future liquidity event, vested shares will have a value that is determined by the liquidity event valuation. If that liquidity event involves an IPO or listing, then shares will thereafter have a public market value.